Unite Disposes of Woburn Place for £135 Million

Unite Students has announced the disposal of Woburn Place in London for £135 million to GCP Student Living PLC.

GCP Student Living PLC, is a Real Estate Investment Trust (REIT) and already owns a number of student accommodation schemes across London, Egham, Guildford and Bristol.

The property was part of Unite's LSAV joint venture, and the price reflects a value per bedroom of £316,000, a net initial yield of 4.5% and a 6% premium to book value.

Situated in Bloomsbury, Woburn Place is a direct let student accommodation block consisting of 427 bedrooms, which are predominantly studio en-suites.

The disposal of the site forms part of Unite's strategy to take advantage of the ongoing strength in the investment market and substantially completes plans to recycle £150-£200 million of assets during 2017.

The proceeds of the sale will be put towards the company's development pipeline and further investment into higher quality investments such as the recently acquired on-campus accommodation at Aston University.

Following the disposal, the group's LTV will fall to 32%.

Commenting on the sale, Richard Simpson, Group Property Director, said: "We will continue to invest in our highly accretive development pipeline and to target further acquisitions that enhance the quality of our portfolio and support earnings growth. Our strategy remains focused on high quality Universities, where we see the most long-term growth."